A non-tariff barrier refers to regulations other than direct customs duties that can potentially obstruct international trade flows.
Key Examples:
- Import quotas, licenses, product standards and certifications requirements.
- Technical barriers like unique plugs/ports or package labelling rules.
- Sanitary and phytosanitary measures for food/agricultural goods.
Example:
South Korea faced accusations of non-tariff trade barriers due to BMW cars rejected for rear-view mirror regulations.
Key Takeaways:
While protecting domestic industries and consumers, complex non-tariff measures can be implemented as disguised protectionism. International trade agreements aim to reduce such unnecessary barriers inhibiting free movement of goods.